If you are stuck in such a situation, here is what to do.

A gentleman named Mr. Sameer Verma found himself in a difficult predicament. He had decided to purchase a flat in a new apartment complex being developed in the city of Chandpur. The developer, “Prime Homes Ltd.,” executed an Agreement for Sale with Mr. Verma, upon which he paid an advance of ₹10 lakhs. However, a major issue surfaced later: Prime Homes Ltd. was not the actual owner of the land on which the building was being constructed. The land belonged to another investor, a Mr. Rajesh Gupta. Now, the builder has gone silent, refusing to proceed with the sale and not answering any of Mr. Verma’s calls, leaving him in a state of financial and mental distress.

Advice in such cases

Facing such a situation can be overwhelming, but there is a clear legal path forward. It is crucial to act systematically to protect your investment.

• Immediately collate all documents related to the transaction. This includes the Agreement for Sale, payment receipts, bank statements, brochures, and any email or message correspondence with the builder.
• Send a formal Legal Notice to the builder through a qualified lawyer. This notice should clearly state the breach of contract, demand the execution of the sale deed or an immediate refund of the advance with interest, and warn of legal action.
• File a complaint with the Real Estate Regulatory Authority (RERA) of your state. RERA is specifically designed to handle such disputes and can order the builder to fulfil their obligations or provide compensation.
• You can file a civil suit in the appropriate court for “Specific Performance of Contract,” asking the court to legally compel the builder to sell you the flat as per the agreement.
• If there is evidence of fraudulent intent from the beginning, you can also initiate criminal proceedings by filing a complaint for cheating.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

Several laws in India protect homebuyers in such scenarios:

• The Real Estate (Regulation and Development) Act, 2016 (RERA): This is your primary recourse. Under RERA, builders are legally bound to deliver the project as promised. You can file a complaint against the builder for violating the terms of the Agreement for Sale. The authority can impose penalties, order a refund with interest, or ensure the project’s completion.
• The Indian Contract Act, 1872: The Agreement for Sale is a legally binding contract. The builder’s refusal to proceed is a clear breach of this contract, entitling you to sue for damages and relief.
• The Specific Relief Act, 1963: This Act allows you to file a suit for specific performance, where you ask the court to direct the builder to honour the contract and transfer the property to your name.
• Bharatiya Nyaya Sanhita, 2023 (BNS): If it can be proven that the builder had a dishonest intention from the start (e.g., they knew they couldn’t legally sell the flat but took your money anyway), it may constitute the offence of cheating under Section 318 of the BNS.

If you are the complainant

As the person who has paid the money and been wronged, here are the steps you should take:

• Stay calm and do not engage in any aggressive or verbal altercations with the builder. Keep all communication formal and documented.
• Securely gather all your evidence. Make multiple copies of every document, receipt, and communication.
• Do not delay in seeking legal advice. Time is often of the essence in these matters.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

Understanding your position as the victim is the first step towards resolution. Your primary goal is to either get the property you were promised or recover your money with appropriate compensation for the trouble and delay.

• Review your Agreement for Sale carefully with your lawyer to understand all the clauses, especially those related to breach, termination, and possession.
• Document every attempt you make to contact the builder after they become unresponsive. Note down the dates and times of calls, and save screenshots of messages or emails.
• Explore all legal avenues simultaneously. Your lawyer can advise if it’s better to start with RERA, a civil suit, or a criminal complaint, or a combination thereof.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Often, the police may initially perceive such a case as a “civil dispute” related to a breach of contract and may be reluctant to file a First Information Report (FIR). They might advise you to approach the civil courts or RERA. However, you should persist if you have strong evidence of a criminal offence. If your written complaint clearly outlines the elements of cheating under Section 318 of the BNS—such as deception, fraudulent inducement, and wrongful loss—the police are obligated to register an FIR and investigate. Presenting a well-drafted complaint prepared by a lawyer can make a significant difference in how the police respond.

FAQs people normally have

Can I get my advance money back with interest?
Yes. Both RERA and civil courts have the power to order the builder to refund your entire amount along with interest as prescribed under the law.

Can the court force the builder to give me the flat?
Yes. Through a “suit for specific performance,” you can ask the court to enforce the agreement. The court will consider the facts and can order the builder to execute the sale deed in your favour, provided the builder has the legal title to do so.

What if the builder doesn’t own the land?
This complicates the matter significantly. If the builder does not have the legal right or a valid development agreement with the landowner to sell the flat, they cannot transfer a valid title to you. In this scenario, your primary remedy would be the recovery of your money with interest and damages for fraud and breach of contract.

What evidence is required?

Strong evidence is the backbone of your case. You will need:

• The original Agreement for Sale signed by you and the builder.
• Proof of payment: Bank statements, payment receipts, or any document acknowledging the receipt of ₹10 lakhs by the builder.
• All communications with the builder: Emails, letters, WhatsApp chats, and call records.
• The project brochure or any advertisements that induced you to invest.
• A copy of the legal notice sent to the builder and the postal receipt.

How long will the investigation take?

The timeline can vary depending on the legal path you choose:

• Legal Notice: The builder is typically given 15 to 30 days to respond.
• RERA Complaint: RERA proceedings are designed to be swift, and a resolution can often be reached within 60-90 days.
• Civil Suit: A suit for specific performance or recovery can be a lengthy process, potentially taking a few years to conclude in the Indian judicial system.
• Criminal Complaint: Police investigation time varies. After a chargesheet is filed, the criminal trial can also be a prolonged process.

Advocate Sudhir Rao, Supreme Court of India